Traders face increased costs challenge

The Chamber of Commerce and Industry Queensland says the introduction of new taxes at the start of the month has made it harder for businesses to remain profitable.

The general manager for advocacy, Nick Behrens, says businesses now have increased costs due to the carbon tax, higher electricity prices and compensation premiums and increased wages.

Data from the Australian Bureau of Statistics shows a 3.4 per cent drop in the number of businesses in the central coast region over the past 12 months.

Mr Behrens says this financial year will be challenging.

"Those businesses that are continuing to trade have done the hard yards and if they stick it out a little bit longer then there's no question, but the economic fundamentals of our state are strong," he said.

"The strongest survive and the weak unfortunately close their doors, so when the good times do roll around again, those businesses will hopefully be benefiting."

He says electricity prices, as well as high employment costs, have hurt businesses.

"Some business have been able to absorb these cost rises whereas some businesses haven't had the margins or reserves available to them and accordingly they've had to close their doors or wind back employment," he said.